CVS higher as Smith Barney ups to 'buy' vs 'hold'

NEW YORK (CBS.MW) -- CVS
CVS, -0.98%
shares climbed 2 percent in midmorning trade after Smith Barney upped the stock to "buy" from "hold" and said front-end sales are poised for continued growth as consumer confidence builds and the company's new digital rollout takes hold. "We think 2-3 percent plus front-end sales is reasonable in a better economic environment," analyst Lisa Cartwright told clients in a note. Cartwright is expecting the company's pharmaceutical business to benefit from generic introductions. The analyst also said she expects CVS to end up buying Eckerd's Texas, Florida and LA stores. While not part of the upgrade, "at the right price, we would see (that) as a positive for CVS' growth prospects," she said. CVS was up 2 percent at $36.95.

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